What’s happening with the Renters Reform Bill?
Landlords crave stability and certainty, especially when new legislation could impact their portfolios. 2024 promised significant changes with the Renters Reform Bill entering its final phase before Royal Assent. However, the sudden call for an election has altered the landscape.
What was in the Renters Reform Bill?
Just as Prime Minister Rishi Sunak stood outside Number 10 Downing Street to announce the election, the House of Lords was debating the Renters Reform Bill. This landmark bill, with support across major parties, first entered Parliament in May 2023 and was expected to become law this summer.
The main points of the original bill included:
- Phased abolition of assured shorthold tenancies and 'no fault' section 21 evictions.
- New grounds and amendments for repossessing properties.
- Revised processes for rent increases for certain tenancies and the introduction of a redress scheme/ombudsman for private tenants in England.
- Creation of a private rented sector database and property portal, requiring all landlords in England to register themselves and their properties.
- Enhanced enforcement measures for local authorities, including additional investigatory powers.
- Easier processes for tenants to have pets.
- Application of the decent homes standard to the private rental sector.
- Prohibition of blanket bans against tenants receiving benefits.
However, with the election date confirmed and Parliament no longer in session, the bill is currently stalled. Given its prior cross-party support, a similar version is expected to reappear once a new government is formed. So, what might the bill look like if Sir Keir Starmer and the Labour Party assume power, as expected?
What’s happening now?
Deputy Leader of the Labour Party and Shadow Housing Secretary, Angela Raynor, has stated that this legislation is her top priority. She has promised to scrap 'no fault' evictions on day one. While this is a bold plan, the reality of such an immediate change could increase pressure on the courts. Therefore, a phased introduction might be necessary.
Under Labour, the priorities of a future bill are likely to include:
- Immediate or phased abolition of no fault evictions.
- A new decent homes standard to improve living conditions.
- A plan to end automatic evictions for rent arrears.
- Upgrading every home to EPC standard C within a decade.
- Introducing a four-month notice period for landlords.
- Rights for renters to have pets and make reasonable alterations to properties.
- Schemes to make tenancy deposits more portable for renters moving between properties.
How can landlords prepare?
Ending Section 21 ‘no fault evictions’ is the biggest change likely to impact landlords. This would mean reverting to Section 8 ‘Fault evictions’, requiring evidence to demonstrate why a tenant must leave. Without addressing court delays, landlords might face extended periods without rental income.
Landlords should be prepared for potential lengthy delays and plan for periods without income.
The Decent Homes Standard will increase pressure to bring rental properties up to the standards already in place for the social rented sector. Compliance with existing requirements, like gas safety certificates, will be monitored more closely.
Using dedicated landlord boiler cover from YourRepair can ensure gas safety checks are conducted automatically each year to avoid breaches.
Upgrading rental properties to meet the new EPC standard should already be a priority. Ensuring properties are energy efficient makes them more desirable to renters, affordable to heat, and compliant.
YourRepair’s sister company, Hometree, can assist with energy-efficient upgrades such as installing efficient boilers, heat pumps, solar panels, and underfloor heating. Regular maintenance of heating systems can also help achieve the required EPC rating.
Stay informed during this period of uncertainty. With Michael Gove stepping down as an MP and Labour’s Angela Raynor vying for his former role as Housing Secretary, closely monitor the Conservative and Labour manifestos to anticipate future developments.
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